Abstract:
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In this study, we discussed the implications of the Euro -Algerian relationship of
Algeria’s trade balance for the period 2005-2016.
The study adopted the analytical descriptive and quantitative approach To investigate the relationship between the variables of the study. Through the analysis of trade exchanges between Algeria and the EU, prior to the entry into force of the Euro Algerian association agreement it turns out that the implications did not affect the
Algerian foreign trade which means that the association agreement did not have any influence of creating or converting trade.
One of the most significant findings of the study is that the Algerian partnership
with the EU did not disturb the trade balance neither exports nor imports.
Another remarkable result is that the trade balance is mainly affected by the price of oil
As for exports, they are positively inspired by the industrial production index in
addition to oil’s price.
While the Algerian imports from EU have a direct relationship with the price of oil aside to the general level of prices in the EU. In the other words, Algerian imports have an inverse relationship with the euro
exchange rate.
Therefore, we can claim that Algeria’s trade balance is attacked or affected by external shocks. |